summary
Introduced
03/04/2026
03/04/2026
In Committee
03/04/2026
03/04/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Pension Security and Cost Efficiency Act. Sets forth findings. Provides that, beginning in State fiscal year 2027 and continuing through State fiscal year 2045, the State shall make the required annual State contributions to the 5 State-funded retirement systems on the first day of the fiscal year. For State fiscal years 2027 through 2031, authorizes, if the State Actuary makes a specified written certification, up to $6,000,000,000 in Pension Obligation Bonds to be used for the sole purpose of reducing the principal balance of unfunded liabilities of the 5 State-funded retirement systems. Provides that the proceeds of pension obligation bonds may not be used to fund the State's normal cost, to reduce or replace any minimum contribution otherwise required, or to pay benefits attributable to service rendered after the date of deposit of the proceeds. Provides that, for State fiscal years 2027 through 2031, the Governor is authorized to direct the payment of supplemental State contributions to the 5 State-funded retirement systems for the purpose of further front-loading payments and reducing unfunded liabilities. Provides that, for State fiscal years 2032 through 2045, the minimum contribution to each State-funded retirement system to be made by the State for each fiscal year shall be the re-amortized minimum contribution, which shall be calculated as a level-dollar amount over the years remaining to and including State fiscal year 2045 and shall be sufficient, in combination with employee contributions, investment income, and other income, to bring the total assets of each State-funded retirement system to at least 90% of its total actuarial liabilities by the end of State fiscal year 2045. Makes conforming changes. Amends the State Pension Funds Continuing Appropriation Act to make conforming changes. Effective immediately.
AI Summary
This bill, referred to as the Pension Security and Cost Efficiency Act, aims to reform how the State of Illinois funds its five state-funded retirement systems (General Assembly, State Employees', State Universities', Teachers', and Judges' Retirement Systems) to improve their financial health and reduce long-term costs. Starting in fiscal year 2027 and continuing through fiscal year 2045, the State will make its required annual contributions to these systems on the first day of each fiscal year. For the years 2027 through 2031, the State is authorized to issue up to $6 billion in Pension Obligation Bonds, which are debt instruments used to borrow money specifically for pension liabilities. The proceeds from these bonds can only be used to reduce the principal amount of the unfunded liabilities (the amount a pension system owes beyond its current assets), not for current benefit payments or future service costs. Additionally, during this period, the Governor can direct supplemental State contributions to further accelerate payments and reduce unfunded liabilities. From fiscal year 2032 through 2045, the State's minimum contribution will be recalculated as a "re-amortized minimum contribution," meaning it will be a level dollar amount spread over the remaining years to ensure the systems reach at least 90% of their total actuarial liabilities by the end of fiscal year 2045. The bill also makes conforming changes to other related acts to align with these new provisions.
Sponsors (1)
Last Action
Referred to Assignments (on 03/04/2026)
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